Panthera Resources said it intends to deliver a notice of dispute to the Indian Government this quarter in relation to the Bhukia Mine.
If no meaningful correspondence follows from the Indian government or if there is no settlement agreed upon, Panthera said it will then deliver a notice of arbitration.
Panthera is suing the Indian government for a breach of the 1999 trade agreement with Australia, claiming the Bhukia deposit was illegally expropriated.
Under the treaty, an arbitral tribunal is to be constituted within two months of delivery of the notice of arbitration.
In a statement, Panthera added that an article in the Times of India on 30 September suggested the gold deposit at Bhukia is worth more than US$1 billion.
This valuation has not been independently verified by the company, said the statement.
Panthera added that at this stage it is not able to make any comments in relation to the potential quantum of damages that IGPL [its subsidiary involved in the dispute] will claim from India.